South suburban bank shuttered

Heritage Community Bank was shuttered today by regulators, becoming the third Illinois institution to fail so far this year as the banking industry faces its toughest time in nearly 20 years.

The Glenwood-based institution, which has assets of about $230 million, lost $21.2 million in the fourth quarter.

MB Financial Bank will assume the deposits of Heritage Community Bank. Heritage's headquarters and branches in Dolton, Orland Hills and Westmont will reopen Saturday as branches of MB Financial.

The closing came four months after regulators ordered Heritage to improve its management, strengthen its lending standards and raise capital.

Heritage deposits will continue to be insured by the Federal Deposit Insurance Corp.

Over the weekend, Heritage depositors can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual, regulators said.